Dmitry Nekrasov’s Philosophy — on the Past, Present and Future of Ukrainian Brewing IndustryA meeting with Dmitry Nekrasov always turns into a training course: “Introduction to brewing business“. We are talking to a clever “playing trainer“ a person that can be called a godfather of the Ukrainian craft. He has a dozen of successful projects to his name. Dmitry told us about craft beer in Ukraine, on market cycles, on specifity of operating in retail and HoReCa, on union of Ukrainian brewers and certainly, how a brewery of his own, First Dnipro Brewery is doing.
The market of import beer in Russia: review and databasesThe market of import beer is rapidly growing and changing. But while in the past years it was growing due to brands variety, in 2019 major and affordable brands from TOP-10 were developing actively. It seems that the fact of a brand origin from far abroad counties, even if it is not well known but has moderate price and good distribution provides for million liters of sales in the territory of Russia. Among distributors AB InBev Efes was far behind, yet the role of Baltika and suppliers of the second row got more important. The boom of German brands was followed by stagnation of import from other traditional regions (and Belarus) instead the supplies from Mexico, Lithuania and Asian countries grew considerably.
Russia: Positions of Brewing CompaniesThe review contains an analysis of interim performance of brewers in the first half of 2019. There are rather dynamic changes behind a modest industry growth. Baltika is again experiencing a stage of volumes and market share slid due to competition with AB InBev Efes. Because of the price competition and presence expansion in the modern trade company #2. has come close to the leading position. At the same time sales of Heineken Russia have continued growing which makes the premium part of the portfolio heavier. The market premiumization trend had been also confirmed by import brands. MBC and Zavod Trekhsosenskiy have been the most successful among federal market players. The market share of independent regional brewers and Ochakovo have continued falling as they are being squeezed out by the market leaders at their competitive fields.
Ukrainian beer market 2019: companies and brandsIn 2019 beer production and market have been still fluctuating about zero point. However, the past season was successful for brewers judging by the sales profitability. The price mix has improved due to rapid general market premiumization, as well as its particular aspect, the growth of import beer sales. By the season end AB InBev Efes improved its positions considerably. It turned out that consumers had not forgot Efes brands that had to leave the market, but started to recover rapidly. Against the stagnating market that meant sales decline of other companies, in the first place Carlsberg Group that most of all beneficiated from Efes exiting the market. PPB turned out to be stable to branding activity of its competitor and Obolon kept the same volumes and at the moment it is the absolute leader of the economy segment. The share growth of independent producers took place thanks to leading craft breweries, that so far do not have a big market weight, but they are rapidly gaining it.
Brewing industry in Kazakhstan 2019During the first half of 2019, the majority of Kazakh brewers made their contribution into positive dynamics. Yet it was companies of the lower division, not the two transnational leaders that raised their production and sales. The shares of draft beer and aluminum can which is rapidly squeezing glass bottle out of the market, have been growing. The price segmentation has remained stable despite the substantial rise of retail prices and fluctuations of brand market shares, while the borders between segments have become blurred. The main events in the industry have been: the announced revision of the beer excise policy, launch of BeerKhan brand in the strong beer segment, and most important – purchasing assets of Shymkentbeer by Arasan.
The trend of complication of Russian beer market is going on and in several directions at the same time. The range has got wider, the import and small segments are growing, namely craft beer, alcohol-free beer and special flavor beer. At the same time, all ex-mega brands and light lagers by Russian brewers are experiencing a decline of their shares. AB InBev Efes, Heineken, MBC and Pivzavod Trekhsosenskiy have exceeded the market, Carlsberg was developing slower than the market and Ochakovo as well as some other mid-sized breweries have been cutting down their volumes. To a big extent brewers’ performance was connected to their ability to reach agreement with networks, sacrifice their margin and enter new markets. Craft brewers are facing a serious danger of producers’ registration introduction – de facto licensing. ...
Diageo Surges After Posting Profit Growth on Emerging-Market Whisky Sales
The stock gained as much as 6 percent, the biggest intraday advance since October of last year. Full-year operating profit rose 5 percent on a so-called organic basis as higher sales of whisky, including the Johnnie Walker brand, in emerging markets offset a slide in Europe. That matched analysts’ estimates.
Diageo set a “medium-term” goal to improve sales on a so- called organic basis by an average 6 percent, stronger than last year’s 5 percent growth. The distiller said business in July and August held at the levels of the previous six months, providing some relief for investors after brewer Heineken NV (HEIA) yesterday reported a weakening in sales during those months.
“The clarity on the medium-term outlook is welcome,” said Martin Deboo, an analyst at Investec Securities in London. Diageo’s commitment to “decent margin improvement” is also positive, said Deboo, who has a “hold” rating on the stock.
The maker of Smirnoff vodka and Captain Morgan rum said today that it’s seeking to improve operating margin, a measure of profitability, by 200 basis points in the next three years, and to grow earnings per share at a “double-digit” rate.
“Medium-term guidance looks to be setting targets that are tough but achievable and also make Diageo look attractive as an investment proposition if achieved,” Phil Carroll, an analyst at Shore Capital in London, wrote today in a note.
Diageo’s shares traded at 1,171 pence as of 9:30 a.m. in London, up 4.7 percent, or 53 pence. The stock is down 1.2 percent this year, compared with an 11 percent drop in the U.K. benchmark FTSE 100 index.
“The news from Heineken yesterday was discouraging for people,” Deirdre Mahlan, Diageo’s chief financial officer, said today in a telephone interview. “We just wanted to make sure our good news was heard by the market.”
Heineken, the world’s third-biggest brewer by volume, yesterday fell by a record in intraday trading after saying it anticipates annual profit that was little changed.
Mahlan said business at Diageo in July and August had “continued along the trajectory we saw” in the second half.
Diageo, which spent 1.6 billion pounds last year expanding into emerging markets, said sales of Scotch whisky and its more expensive “reserve brands,” including Tanqueray Ten gin and Ron Zacapa rum, helped offset tough conditions in Europe.
Chief Executive Officer Paul Walsh said in a Bloomberg Television interview today that growth is “polarized” in Europe, held back by Greece and Spain. Sales slid 3 percent in the region. Diageo expects the volume of drinks sold in Europe this year to show “flattish to low growth,” Mahlan said.
Full-year net profit rose to 1.9 billion pounds from 1.6 billion pounds a year earlier, compared with an average analyst estimate of 1.93 billion pounds. Net sales rose to 9.9 billion pounds, Diageo said.
The company increased its marketing spending by 8 percent to 15.5 percent of sales. Diageo took a “conscious decision to be investing significantly behind our brands,” Mahlan said, particularly behind emerging markets.
Sales and operating profit rose in all regions apart from Europe, the distiller said. Sales in North America rose 3 percent as consumers bought more spirits in the U.S., the world’s biggest market, including Ciroc vodka.
Diageo has a “strong balance sheet,” Mahlan said, enabling it to look for acquisition opportunities in emerging markets. It completed the $2.1 billion acquisition of Turkey’s Mey Alkollu Ickiler Sanayi & Ticaret AS yesterday, adding spirits including Yeni Raki. The company was in talks to buy Jose Cuervo, the world’s biggest tequila brand, from its family owners, three people with knowledge of the matter said in May.
“We’ve said before that Jose Cuervo is a great brand,” Mahlan said. “Should the owners choose to sell it, we’d certainly be interested in it.”
25 Авг. 2011